🎣 Musk v. Tariffs

TGIF. U.S. importers paid $17B in tariffs in April. Goods from China and Canada dropped sharply, and freight volumes are feeling the heat. Meanwhile, Musk rails against tariffs. We break it all down in today's feature.

Plus:

• 💼 Truckstop CEO Tucker Steps Down
• 📃 Freight Fraud Bill Advances
• 📉 Fleet Margins to Shrink Further
• ... and more.

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🍳 WHAT’S COOKIN’ IN FREIGHT

💼 Truckstop CEO Kendra Tucker Steps Down, Founder Scott Moscrip Returns. Truckstop announced Thursday that CEO Kendra Tucker has stepped down after three years in the role. Founder and former CEO Scott Moscrip will serve as interim chief while a national search is conducted for a permanent replacement. Tucker, who joined in 2020, led Truckstop through the pandemic and helped launch fraud protection and factoring services. Some, like AscendTMS CEO Tim Higham, are excited for the change, having not been pleased with the former leadership. In a post on his LinkedIn, he stated, “Scott knows this business like no other,” praising Moscrip, while also taking a jab at Tucker, saying, “It’s nice to have an adult in the pilot’s seat again.” A renewed focus on innovation and customer success will be on the agenda during this transition.

📃 Senate Panel Advances Bill to Combat Freight and Moving Industry Fraud. The Senate Commerce Committee has advanced the Household Goods Shipping Consumer Protection Act, a bipartisan bill aimed at curbing fraud in the moving industry. Sponsored by Sens. Deb Fischer (R-Neb.) and Tammy Duckworth (D-Ill.), the legislation would strengthen FMCSA’s authority to withhold registration from fraudulent movers and assess civil penalties. “This bill gives FMCSA the tools needed to protect consumers from fraud,” Fischer said. Industry groups, including ATA and TIA, are praising the move as vital to restoring integrity and protecting consumers amid growing losses from freight fraud, now estimated at $35 billion annually. Hear more on this during today's live Freight Gong Friday show.

📉 Fleet Margins Set to Shrink Further in 2025, Logistics Report Warns. For-hire carriers are bracing for tighter margins in 2025, according to CSCMP’s latest State of Logistics report. Spot and contract rates remain weak, while tariffs and inflation drive up costs. The Trump administration’s steel and aluminum tariffs, currently 50%, are raising vehicle prices and disrupting demand. ACT Research cut Class 8 truck forecasts, and S&P expects a 9% retail price hike, potentially reducing new vehicle demand by 17%. Shippers are shifting focus from rates to service KPIs, opting not to seek lower rates due to the current freight environment, according to the author, Korhan Acar. “I’m hoping 2026 is the year we see an uptick in transportation activity,” Acar later added.

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U.S. Imports Plunge 20% as Tariffs Hit $17B

April was a wild month. Imports into the U.S. dropped by 20%, the biggest monthly fall on record, as Trump's wave of new tariffs finally landed with full force. From steel to sneakers, foreign goods are either too expensive or stuck in limbo.

And the $17 billion price tag in presidential tariffs is hitting every state.

The Numbers Hurting Freight:

• $3.4B in tariffs hit California alone — the top state by far.
• Texas, Michigan, Illinois, Georgia all clocked in above $850M+ in new costs.
• Imports of cars dropped 33%, pharmaceuticals tanked, and even artwork and toys were hit.
• The U.S. trade deficit narrowed by a record 55.5%, mostly because we're simply buying less from abroad.

“The April trade report indicates the impact from tariffs has well and truly arrived.” – Oxford Economics

Who’s Gaining from the Chaos?

While China and Canada exports dropped hard, Vietnam and Taiwan saw brief wins as companies rerouted supply chains just in time to dodge higher duties.

But with Trump threatening to reinstate tariffs in 90 days, it’s not exactly smooth sailing.

Policy Ping-Pong

The Biden-era Section 301 tariff exclusions on things like solar equipment and EV batteries were just extended to August 31, softening the blow for U.S. manufacturers.

But those items are separate from the newer Trump tariffs, which are still very much in play.

Companies Use Tariffs as an Excuse to Raise Prices

Even goods unaffected by tariffs are seeing markups. Why? Because businesses know customers expect higher prices.

According to a Federal Reserve survey, firms are spreading the cost pain (or padding margins) by jacking up prices across the board.

“A significant share raised prices of unaffected goods to enjoy the extra margin.” – NY Fed Beige Book

Musk vs. Trump

Elon Musk broke with Trump on X this week, saying tariffs “will cause a recession in the second half of this year.”

While Musk was recently an ally, he’s now calling Trump’s budget bill an “abomination” and slamming tariff policies as economically dangerous.

Freight Takeaways:

• If you’re a freight broker, expect lower volumes on imports in Q2, particularly for auto, pharma, and consumer retail freight.
• Tariff uncertainty = last-minute rerouting and rate volatility.
• U.S. firms are already passing higher costs to customers, which could further dampen demand.
• SMEs are especially exposed, with Trade Partnership Worldwide urging importers to join lobbying efforts this July in D.C.

What’s Next?

White House officials are rushing to ink new trade deals before Trump’s 90-day tariff pause expires in July. If no agreement is reached, tariffs could spike again, and so could freight disruptions.

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🌎 AROUND THE FREIGHT WEB

📉 Carrier Attrition Continues. Mathew Leo noted via LinkedIn that truckload carrier exits remain elevated amid soft market conditions and excess capacity. FMCSA data suggest active carrier counts may return to historical trendlines by early 2026 if current attrition rates persist.

✂️ P&G to Cut 7,000 Jobs. Procter & Gamble plans to eliminate up to 7,000 roles globally as the company deals with tariff-related costs. Despite the reduction over the next two to three years, near-term challenges still need to be dealt with, according to CFO Andre Schulten.

🚨 Crash Scheme Exposed. Louisiana State Police arrested three truck drivers for intentionally rear-ending a car in a $10 million staged crash scheme. The insurance fraud attempt unraveled under investigation.

📉 Truck Orders Rise, Lags 2024. Truck orders saw an unexpected sequential increase, offering a slimmer of growth. However, volumes still trail year-ago levels. The uncertainties around ‘Liberation Day’ still loom over truck orders.

📦 UPS Surcharges, Walmart Pricing Scrutiny. UPS raised surcharges on fuel and bulky packages, thus increasing retail shipping costs. Meanwhile, Walmart pledged pricing transparency “as they come” after Trump’s “eat the tariffs” remark. The changes will be more pronounced as the year progresses.

🎣 THE FREIGHT CAVIAR CORNER

• Freight Gong Friday. This Freight Gong Friday, we are joined by Daniel Hoff, Vice President of Government Affairs at TIA, and Dean Norris, Chief Executive Officer at Virginia Transport, to discuss the advance of the freight fraud bill with unanimous bipartisan support. Catch it now!
• Freightjobs.co! HaulPay is seeking a Customer Success Manager fluent in both English and Spanish to join their team. Apply now.
• FreightCaviar Forum: Now Live! A space built for brokers, carriers, dispatchers, and freight tech to connect, share, and learn from one another. Sign up now here.

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